Neo Banks – Bellow In Gark http://bellowingark.org/ Sat, 18 Sep 2021 17:03:21 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://bellowingark.org/wp-content/uploads/2021/05/default1.png Neo Banks – Bellow In Gark http://bellowingark.org/ 32 32 Latest mortgage news: Big banks cut 5-year fixed rates https://bellowingark.org/latest-mortgage-news-big-banks-cut-5-year-fixed-rates/ https://bellowingark.org/latest-mortgage-news-big-banks-cut-5-year-fixed-rates/#respond Sat, 18 Sep 2021 15:38:25 +0000 https://bellowingark.org/latest-mortgage-news-big-banks-cut-5-year-fixed-rates/ CIBC this week became the second Big 6 bank to cut its 5-year fixed mortgage rate. The bank lowered its rates by 5 basis points, bringing its uninsured 5-year fixed rate to 2.39% and its 5-year variable rate to 1.35%. The move follows similar cuts from TD Bank on Thursday. TD moves more, which saw […]]]>

CIBC this week became the second Big 6 bank to cut its 5-year fixed mortgage rate.

The bank lowered its rates by 5 basis points, bringing its uninsured 5-year fixed rate to 2.39% and its 5-year variable rate to 1.35%.

The move follows similar cuts from TD Bank on Thursday.

TD moves more, which saw rates drop 45 basis points. This brings its 5-year insured fixed rate (high ratio) to 1.89% (instead of 2.34%) and its uninsured 5-year fixed rate to 1.99% (instead of 2.44%). .

These moves follow a downward trend in bond yields in recent months. The yield on 5-year bonds has fallen from 1.01% in June / July to a range of 0.80% to 0.90% since August. Bond yields generally lead to fixed mortgage rates.

New housing starts slowed in August, according to CMHC

All eyes are on the housing supply these days given historically low inventory levels, which are struggling to meet current strong demand.

That’s why the latest housing starts figures released this week were important, as they serve as a rough indicator of future supply.

Overall, seasonally adjusted housing starts fell to 260,239 units in August, from 270,744 in July, according to the Canada Mortgage and Housing Corporation (CMHC).

The annual rate of urban starts fell 4.7%, led by a 5.7% drop in starts of apartments, condos and other multi-unit dwellings. Urban single-detached housing starts fell 2% year over year.

Despite the drop, housing starts are still well above the long-term average, however

“On a trend and monthly SAAR [seasonally adjusted annual rates] base, the level of housing starts activity remains high by historical standards, ”CMHC noted. “Among Montreal, Toronto and Vancouver, Toronto was the only market to record growth in the total number of SAAR starts in August, due to modest growth in the multi-family segment.

Neo Financial grows in mortgage lending

A fintech company that advertises itself as a “disruptive online bank” should significantly expand its product offering to include mortgages.

Calgary-based Neo Financial Technologies launched a year ago with a no-fee Mastercard and a high-interest savings account. It has since grown nationwide and has over 4,000 retail partners where its cardholders can earn money.

The company just completed a second fundraiser valued at $ 64 million, bringing the total funds raised by the company since its launch to $ 114 million.

The next steps in the company’s expansion are expected to largely include mortgages, as it aims to challenge traditional big banks and gain a growing share of that market share.

“With 90% of the Canadian market share held by the Big Five banks, Neo was designed to give Canadians what they lacked: choice and innovation,” the company says on its website.

In a job assignment for a Chief Mortgage Loan position, the company said: “Neo expands our product offering to include innovative mortgage products backed by cutting edge technology… You will be instrumental in transforming our mortgage business into a domestic brand in Canada. “


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How FS organizations can enter the new era of digital banking https://bellowingark.org/how-fs-organizations-can-enter-the-new-era-of-digital-banking/ https://bellowingark.org/how-fs-organizations-can-enter-the-new-era-of-digital-banking/#respond Fri, 17 Sep 2021 20:55:04 +0000 https://bellowingark.org/how-fs-organizations-can-enter-the-new-era-of-digital-banking/ This article first appeared in Financial collection. The financial services (FS) industry is currently undergoing major change. With the adoption of new digital habits, consumers expect more convenience, choice and flexibility in their banking relationships. At the same time, concerted regulatory pressure to encourage innovation and stimulate competition in the banking industry has accelerated the […]]]>

This article first appeared in Financial collection.

The financial services (FS) industry is currently undergoing major change. With the adoption of new digital habits, consumers expect more convenience, choice and flexibility in their banking relationships. At the same time, concerted regulatory pressure to encourage innovation and stimulate competition in the banking industry has accelerated the investment of FS organizations in Open Banking initiatives around the world. The race to harness customer data and deliver superior, next-generation services and experiences is on.

But there is a problem. The vast majority of SF organizations do not comply with mandates such as the EU’s PSD2-SCA and do not meet application deadlines. Indeed, according to recent research of Delphix, only 3% of FS companies are convinced that they are ready for the next major deadline for the application of Open Banking, scheduled for September 2021 despite a two-year lead time.

Whether it is challenges related to data privacy, compliance, or a lack of resources and skills, financial services organizations must overcome the obstacles that are currently hampering the open banking revolution. Only then will they be able to enter a new era of digital banking.

Main obstacles to opening up banking services

Open banking has the potential to revolutionize financial services. Connecting banks, third parties and technical providers – allowing them to share authorized data – will bring more competition and innovation to the industry, which in turn will lead to better products and services. For customers, it will bring more choice and better experiences. For FS organizations, there will be new sources of revenue and a sustainable service model that will allow them to keep up with new entrants in the market, including neobanks and rival startups.

But using data for innovation can be difficult because it often exists in many disparate systems, silos across an enterprise in different departments. This makes it extremely difficult to deliver it safely, effectively and efficiently to those who need it to glean valuable information or drive new projects. The heavy reliance on existing infrastructure and basic banking systems in need of modernization exacerbates this problem.

Accessing and effectively using data for innovation becomes even more difficult when you add privacy and compliance concerns to the mix. In reality, 62% of FS companies cite Protecting sensitive data across multiple systems and APIs is the biggest data privacy and compliance challenge. Without access to a constant stream of recent, compliant data for the development and testing of APIs and new applications, FS organizations risk losing ground in industry transformation. In addition, they can face heavy fines related to non-compliance with open banking regulations across the world.

While FS organizations must protect sensitive data across multiple systems and application programming interfaces (APIs), they must also ensure that their compliance measures do not limit access to data and maintain its quality and ease. of use. It is a delicate and difficult balance to find, with the majority of FS companies (92%) predicting that their organizational operations will be disrupted when they start deploying Open Banking APIs. However, there are ways to increase their chances of success.

Opening the door to a better bank

Traditional test data management tools are simply not up to the task of scrambling the data of a multigenerational technology stack. Instead, they make it difficult for business teams to perform integration testing while maintaining compliance. That’s why FS organizations should look to DevOps as a way to deliver compliant data quickly through an API-driven data platform.

An API-driven platform that combines data delivery and compliance across multigenerational systems could automate, scale, and optimize testing while mitigating compliance risks. Such a platform would reduce the latency resulting from an inability to find and protect sensitive data and deliver and update environments (for developers working on APIs and new banking products), while increasing productivity and time to market.

A company that is already leading the way in combining data compliance with on-demand delivery is BNP Paribas. The management team wanted to make it easier to use data to increase productivity and performance. By adopting an API-based platform, BNPP has succeeded in radically accelerating the delivery of environments, so that development and testing teams around the world can triple the AI ​​projects going into production and accelerate the delivery of environments. adoption of the cloud. This project improved the quality of the software, reduced downtime and reduced the time to launch its open API market. All of this was achieved while maintaining compliance.

In the first six months of 2020, the number of users of banking applications or products opened in the UK doubled, and by February 2021, it had grown to over three million. There is no doubt that Open Banking is the future of finance. In order to stay ahead and thrive tomorrow, financial services companies must act today. Implementing an API-based data platform will enable people working in the industry to unleash the power of their data and enter the Open Banking revolution.


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A scope exists for full-service digital banks in the future: SC Garg https://bellowingark.org/a-scope-exists-for-full-service-digital-banks-in-the-future-sc-garg/ https://bellowingark.org/a-scope-exists-for-full-service-digital-banks-in-the-future-sc-garg/#respond Fri, 17 Sep 2021 16:54:44 +0000 https://bellowingark.org/a-scope-exists-for-full-service-digital-banks-in-the-future-sc-garg/ Outlook September 17, 2021 10:24 PM IST A scope exists for full-service digital banks in the future: SC Garg perspectivesinde.com 1970-01-01T05: 30: 00 + 0530 New Delhi, September 17 (PTI) Former finance secretary Subhash Chandra Garg said on Friday that the new era of neo-banking banking should be regulated and it is possible to license […]]]>



A scope exists for full-service digital banks in the future: SC Garg







perspectivesinde.com

1970-01-01T05: 30: 00 + 0530

New Delhi, September 17 (PTI) Former finance secretary Subhash Chandra Garg said on Friday that the new era of neo-banking banking should be regulated and it is possible to license full-service digital banks in the future. .

Highlighting the difference between fintechs and the new, fully digital, branchless banks, he said that while the former is payments related and regulated, the latter is about credit and is unregulated.

He said that while many countries have licensed new fully digital, branchless banks, Indian regulations are still against this.

India has an extremely fragmented banking system on the credit side, which requires a lot of regulations.

“I think we have to think that in the digital space, these kinds of constraints will make digital banking a little less exciting,” he added.

“We have no law to define or establish a basic principle or law relating to credit management. We only have that on the payments side. We have the payment settlement law which regulates payments.” , he said during a speech at an Assocham webinar on neobanking.

This makes it easier for the Reserve Bank to license fintech companies, he added.

“But suppose that tomorrow the Reserve Bank says to authorize the neo-banks, without giving them a banking license … then under what law the Reserve Bank authorizes or regulates them, there is nothing,” he said. -he adds.

Garg suggested, “We should come up with some kind of legislation to define and regulate credit … have a regulator for them.”

The former finance ministry official also said that at some point India is expected to allow full-service digital banks. PTI KPM MKJ

MKJ


Disclaimer: – This story has not been edited by Outlook staff and is auto-generated from news agency feeds. Source: PTI



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The threat of neobanks is on the rise, but incumbents already have enough ammunition to deal with it https://bellowingark.org/the-threat-of-neobanks-is-on-the-rise-but-incumbents-already-have-enough-ammunition-to-deal-with-it/ https://bellowingark.org/the-threat-of-neobanks-is-on-the-rise-but-incumbents-already-have-enough-ammunition-to-deal-with-it/#respond Fri, 17 Sep 2021 05:13:14 +0000 https://bellowingark.org/the-threat-of-neobanks-is-on-the-rise-but-incumbents-already-have-enough-ammunition-to-deal-with-it/ Digital banks attract customers to their ranks, from brand awareness to account opening, with native digital marketing strategies and value propositions. Streamlined account opening flows help them close the deal. The ranks of digital-only bank account holders will reach 53.7 million in 2025, against 29.8 million this year, according to Insider Intelligence forecasts. To put […]]]>

Digital banks attract customers to their ranks, from brand awareness to account opening, with native digital marketing strategies and value propositions. Streamlined account opening flows help them close the deal.

  • The ranks of digital-only bank account holders will reach 53.7 million in 2025, against 29.8 million this year, according to Insider Intelligence forecasts.
  • To put that number into perspective, Bank of America and Citibank combined only had 45.3 million active mobile users in the second quarter of 2021. (Citibank reported the number of users for North America, while Bank of America said globally.)

A new report from Insider Intelligence looks at what incumbent banks stand to lose from the rise of a specific type of digital-only bank, neobanks, and how they can fight back.

What the incumbent operators have to lose in the face of neobanks:

New accounts opened digitally. Digital-only US bank account openings have been bitten by the coronavirus pandemic. But the future is theirs:

  • This year, they will grab 7.4 out of 10 digitally opened accounts, and that dominance will not fade. From 2022 to 2025, they’ll get at least 6.6 out of 10 every year, leaving U.S. incumbents to fight for the rest.

Fee income. Giving in to pressure from neobanks to remove fees (such as overdraft or account maintenance fees) eliminates a major source of income for banks:

  • U.S. consumers paid $ 12.4 billion in overdraft fees in 2020, according to Forbes.
  • Total bank fees paid by account holders reached $ 32.2 billion last year, according to personal finance site MagnifyMoney.

Access to certain consumer segments. As neobanks use bespoke services to make inroads into the often underbanked consumer demographics, the long-term customer acquisition efforts of traditional banks could die a thousand fold.

Primary banking relationships. Only 11% of American adults had their main checking account in a digital bank as of December 2020, according to Cornerstone Advisors quoted by Forbes.

  • However, neobanks pursue primary banking relationships by portraying access to leading benefits, such as early direct deposit or higher savings interest rates if customers meet direct deposit or transaction thresholds. .

The incumbents are not powerless. Here’s how to counter the threat of neobanks

These three best practices range from small (low maturity) to aggressive (high maturity):

  • Low maturity. Basic incentives for setting up direct deposit, such as cash bonuses or waived account fees, can help foster primary banking relationships by encouraging customers to make banking a larger part of their financial life. .
  • Average maturity. Providing early access to direct deposit (a perk that is usually a neobank-specific advantage) helps erode a key neobank competitive advantage and persuades customers to implement direct deposit.
  • High maturity. Moving beyond neobanks to next-generation mobile banking features – the ability to manage or cancel subscriptions to services like Netflix or Spotify, for example – would come back to the heart of one of neobanks greatest benefits: their digital prowess. .

For a deeper dive into the rise of neobanks and the major disruptors that could shake up the competitive dynamic between incumbents and challengers, as well as the wide array of counterattacks available to traditional banks, read “The digital-only banking revolution in the United States: how old banks can fight back as neobanks take off. “


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Narmi Launches Narmi Analytics: Enabling Financial Institutions to Take Back Control of Data and Grow with Confidence | New https://bellowingark.org/narmi-launches-narmi-analytics-enabling-financial-institutions-to-take-back-control-of-data-and-grow-with-confidence-new/ https://bellowingark.org/narmi-launches-narmi-analytics-enabling-financial-institutions-to-take-back-control-of-data-and-grow-with-confidence-new/#respond Thu, 16 Sep 2021 13:00:00 +0000 https://bellowingark.org/narmi-launches-narmi-analytics-enabling-financial-institutions-to-take-back-control-of-data-and-grow-with-confidence-new/ NEW YORK, September 16, 2021 / PRNewswire-PRWeb / – Narmi, a leading financial technology company that designs digital banking solutions, announced the launch of Narmi Analytics powered by Sisense, Inc. Narmi Analytics is designed to give banks and credit unions the business intelligence they need to unleash the power of their data, track changing consumer […]]]>

NEW YORK, September 16, 2021 / PRNewswire-PRWeb / – Narmi, a leading financial technology company that designs digital banking solutions, announced the launch of Narmi Analytics powered by Sisense, Inc. Narmi Analytics is designed to give banks and credit unions the business intelligence they need to unleash the power of their data, track changing consumer expectations, and uncover opportunities for growth.

Banks and credit unions are full of proprietary data sources, but many of their current reporting tools are either too limited in the scope of information they can reveal or require a large data science team to maintain. .

Through interactive visual dashboards and personalized reports, Narmi Analytics aims to make business intelligence accessible to all departments of the institution. With codeless drag-and-drop widgets and visual modeling, Narmi Analytics breaks down data silos and makes data analytics accessible.

“Throughout our research and development of Narmi Analytics, we discovered that the universal pain points of data analysis were the lack of control and how manual it is to extract information,” said Chris Griffin, co-founder of Narmi. “Business Intelligence shouldn’t be that complicated. We saw an opportunity to develop a single source of data truth by leveraging all possible data points in Narmi’s digital ecosystem – digital banking for consumers, merchant banking, account opening and administration portal – and merging that data with Sisense. Teams at a financial institution should be able to find real-time answers and share that information, regardless of their technical skills.

“The BI and analytics market is evolving to the point where it has become essential to provide powerful differentiators by facilitating the integration of information when a decision is needed,” said Scott’s Castle, vice president and general manager of products for Sisense. “Most BI and analytics solutions were designed and intended for the data analyst only, but by leveraging Sisense, Narmi provides more personalized and actionable insights to all business decision makers as part of their work flow within the financial institution. “

Narmi Analytics is integrated with Narmi Administration portal as a unified experience to enable banks and credit unions to collect information without having to switch between separate systems. The platform can be implemented in as little as two weeks for financial institutions that choose to add the experience to Narmi’s product suite (digital account opening, consumer digital banking, and enterprise digital banking). ).

To learn more about how Narmi Analytics can help your financial institution, please visit our website or contact directly contact@narmi.com. Narmi will host a webinar on October 7 @ 1 p.m. EST to explore how banks and credit unions can regain control of their data through business intelligence. Subscribe to virtual event here.

About Narmi:

Narmi is a financial technology company that creates business solutions for digital consumer banking, business banking and digital account opening. Financial institutions are working with Narmi to become leading digital organizations, enter the market faster with cutting-edge features, and better compete with mega-banks, challenger banks, and neobanks. With a particular focus on openness, Narmi’s open framework allows financial institutions to build their own extensions and features on the core platform to meet their needs. Today, Narmi feeds financial institutions with billions of dollars in assets and helps move millions of dollars between financial institutions on a daily basis. Visit us at http://www.narmi.com and connect with us on Linkedin and Twitter.

About Sisense

Sisense goes beyond traditional business intelligence by providing organizations with the ability to integrate analytics anywhere, embedded in applications and customer and employee workflows. Sisense customers break through the barriers of analytics adoption by going beyond the dashboard with Sisense Fusion – the highly customizable, AI-powered analytics cloud platform that infuses intelligence in the right place at the right time, every time. Over 2,000 global companies trust Sisense to innovate, disrupt markets and make meaningful change around the world. Ranked # 1 among Business Intelligence companies in terms of customer success, Sisense has also been named one of Forbes’ Top 100 Cloud Companies in the World for five years in a row. Visit us at http://www.sisense.com and connect with us on LinkedIn, Twitter and Facebook.

Media contact

Audrey Song, Narmi, +1 4439871469, audrey@narmitech.com

SOURCE Narmi



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Neo Financial Announces $ 64 Million Series B Increase to Accelerate Growth https://bellowingark.org/neo-financial-announces-64-million-series-b-increase-to-accelerate-growth/ https://bellowingark.org/neo-financial-announces-64-million-series-b-increase-to-accelerate-growth/#respond Wed, 15 Sep 2021 10:00:00 +0000 https://bellowingark.org/neo-financial-announces-64-million-series-b-increase-to-accelerate-growth/ Calgary, Alberta – (COMMERCIAL THREAD) –Neo Financial (Neo), a fintech company founded by two of SkipTheDishes’ co-founders, today announced its Series B fundraising of $ 64 million. This brings Neo’s total funding to C $ 114 million, with Valar Ventures leading both Series A and Series B. With this latest capital increase, Neo will continue […]]]>

Calgary, Alberta – (COMMERCIAL THREAD) –Neo Financial (Neo), a fintech company founded by two of SkipTheDishes’ co-founders, today announced its Series B fundraising of $ 64 million. This brings Neo’s total funding to C $ 114 million, with Valar Ventures leading both Series A and Series B.

With this latest capital increase, Neo will continue to grow its team in Calgary and Winnipeg, and will focus on launching new integrated fintech partnerships with retailers – a significant gap that is underserved by incumbent banks. They will also go beyond “spend and save” to innovate and introduce new products and features throughout the financial lives of Canadians.

Neo’s all-digital app and innovative approach to rewards quickly gained traction in the Canadian market, where the banking industry has long lagged behind the global market. Neo was initially launched in 2020 with the Neo Card, a no-fee Mastercard that earns an average of 4-6% cashback with partners and at least 1% cashback on all expenses, and the Neo Savings account, a High interest savings with all the benefits of a current bank account, which currently pays one of the highest interest rates in Canada. Since launch, Neo has partnered with more than 4,000 partner retailers on its national cash back network, including a strategic partnership with Hudson’s Bay to fund its new Hudson’s Bay Mastercard.

“Reinventing the way Canadians do their banking isn’t easy, but it’s a challenge our team is tackling head on. This increase is a validation not only of the problem Neo is tackling, but also of our team’s ability to solve it, ”said Andrew Chau, co-founder and CEO of Neo. “As one of the largest Series B fundraisers for a Canadian fintech, this new round of funding will allow us to continue to create innovative products and features for all Canadians and businesses. It is an exciting time to grow our team from our Calgary and Winnipeg offices.

“We are increasingly impressed with the Neo Financial team. The pace at which they’ve built and continue to expand their technology, platform and new business partnerships is one of the fastest we’ve seen in our careers, ”said Andrew McCormack, Founding Partner by Valar Ventures. “The Neo team brings a unique platform to the Canadian market; We are confident that Neo will become a giant in the Canadian financial system and improve the lives of millions of Canadians.

New Series B investors included Greenoaks Capital, whose past investments have included Robinhood, Stripe, Discord and Databricks, and Altos Ventures which has backed online gaming platform Roblox and Korean challenger bank Toss, which has achieved status as unicorn in 2018 and is now valued at over CA $ 9.4 billion. Other investors included Breyer Capital, whose founder Jim Breyer led the first round of institutional investing in Facebook and existing investors including Golden Ventures, Afore Capital, Inovia Capital, Thomvest and Maple VC.

This investment follows the recent announcement of Neo’s newly acquired office space in the Winnipeg Stock Exchange District which will serve as its second head office, in addition to its downtown Calgary office. Neo is recruiting for over 100 positions in software development and engineering, products, design, operations, etc. Those interested in learning more about the opportunities at Neo can visit neofinancial.com/careers.

For more information on Neo, visit NeoFinancial.com

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About Neo Financière:

Neo Financial (Neo) is a technology company that works hard to create a better financial experience for all Canadians. Founded in 2019 by the co-founders of SkipTheDishes, Neo is reinventing spending, savings and rewards by using technology to simplify finances, create rewarding experiences and build community for all Canadians. Neo partners with more than 4,000 retail and e-commerce partners across the country to help businesses acquire new customers, generate additional sales and retain customers.

Through partnerships with leading financial institutions, Neo offers its members a safe and secure way to spend and save. Neo’s credit card is issued by ATB Financial and supported by the Mastercard network, and the Neo Savings account is provided by Concentra Bank, a SADC member institution, and is eligible for SADC deposit protection. Neo is headquartered in Calgary, AB and Winnipeg MB, and is backed by top investors across North America. For more information, please visit neofinancial.com.


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Unbank the banked https://bellowingark.org/unbank-the-banked/ https://bellowingark.org/unbank-the-banked/#respond Sat, 11 Sep 2021 09:37:45 +0000 https://bellowingark.org/unbank-the-banked/ Maybe “unbanked” isn’t the problem and maybe banks aren’t the solution. All over the world, in developing and developed countries alike, there are hundreds of millions, billions of unbanked people. But why are so many people not banked? It cannot be because there is a shortage of banks, because there are more banks, challenger banks, […]]]>

Maybe “unbanked” isn’t the problem and maybe banks aren’t the solution.

All over the world, in developing and developed countries alike, there are hundreds of millions, billions of unbanked people. But why are so many people not banked? It cannot be because there is a shortage of banks, because there are more banks, challenger banks, neobanks, and near banks than you can own. There has to be another problem, and as the old saying goes, where there is a problem, there is an opportunity.

It’s a really big opportunity, frankly. The Economist summarizes the situation in America as follows: Access to banks can be expensive and seven million unbanked households, depending on check cashing companies, pawn shops and payday lenders. (They also note that credit and debit cards charge 1-4% merchant fees, which are returned to the wealthy through airline miles and credit card points.)

The American Bankers Association (ABA) and Federal Deposit Insurance Corp (FDIC) have called on more banks to provide “basic bank accounts” to serve unbanked consumers. Yet, many banks already offer these accounts (e.g. Citi, Bank of America

BAC
et al) so it is not clear to me why consumers would have to open an account at First Bank of Wherever when they have already decided not to use Wells Fargo

WFC
or JP Morgan Chase

JPM
.

Unbanked and more

What should be done? Let’s start by talking about people who want a bank account but can’t get one because they don’t have the necessary identification documents or maybe other skills needed to operate in this mode (for example, l literacy). These are the real ones unbanked. Like Wired magazine underline, these basic bank accounts (which are also mandatory in the UK) are accessible to people with poor credit histories, while niche banks such as Revolut and Monzo generally don’t ask potential customers for proof of address to opening an account. So it seems reasonable to ask why nearly two million UK adults still don’t have a bank account, let alone adults in emerging markets or America!

Perhaps it is because the banks are not providing them with anything useful. After all, think about the large number of people who are banked (but also use the products and services provided by fintechs, like me) and the people who are underbanked: people who have a bank account but don’t really want it and don’t use the services offered because the bank account is an 18th century product designed for a bygone era. Professor Lisa Servon wrote “America’s unbanking”About this a few years ago, based on his experiences working in a check cashing operation in New York (I can’t recommend this book highly enough), and the banking experience hasn’t changed much. since then.

There is a very interesting take on all of this in Charlotte Principato’s note on “How about a quarter of underbanked U.S. adults differ from fully banked individuals”At Morning Consult. This goes into the demographic details of America’s fully banked, unbanked, and underbanked population and is food for thought. In his survey, underbanked people were defined as having done at least one of three activities with a supplier other than a bank or a credit union in the past year: buying a money order, paying bills or cash a check. Interestingly, most (58%) of underbanked consumers say they could manage their finances very well without a bank. What they need to improve their financial health is not traditional banking products, but better access to their own money through access to an earned salary.

(Almost two-thirds of underbanked adults say they would be able to manage their finances more easily if they could access their paycheck at any time, a market opportunity that fintechs are already starting to exploit.)

Banks really don’t provide what people need. More at Financial brandJim Marous observes that because new accounts can be opened quickly without closing existing accounts, traditional banks and credit unions fail to understand how primary banking relationships are severed. Customers Open Chequing Accounts with Chime, Investing Relationships with Acorns, Expand Payment Options with Wise, and Take Loans with LendingClub

CL
in increasing numbers. So not only the underbanked people, who use their account only to deposit a paycheck and withdraw money, but also the banked people are turning away from this bank to get the services they want.

We have a situation where some of the banked, most of the underbanked, and all of the unbanked are turning to alternative providers because the banks are unable or unwilling to provide the services these customers want. Let’s call them together the “underserved”. I think the majority of adults are now underserved (prove me wrong!)

Now let’s rephrase the problem: the problem is not to bank the unbanked, but to serve the underserved. And there is no reason to imagine that banks are, or should be, the answer.

Serve the underserved

Bank accounts are quite expensive things to manage (as they should be, as banks should be heavily regulated). In some countries, banks are required to offer a basic bank account to anyone who can pass the identification hurdle to get one. But many of these customers will not be very profitable, and it is costly for the banks to serve them. Why keep forcing banks to provide loss-making services to people who don’t want them anyway?

So what are the alternatives? Half of the unbanked use prepaid cards, but offering underserved people pseudo-bank accounts in the form of prepaid cards doesn’t help much (the fees associated with these cards are significant). What needs are underserved are not banks or cards, but new types of regulated financial institutions that provide the modern services needed to support an economy that is still active 24/7.

What are these services? As economist John Kay noted in his recent article on “Robust and resilient finance“For the Korea Institute of Finance, while” many aspects of the modern financial system are designed to give an overwhelming sense of urgency … only its most boring part – the payment system – is a vital utility upon which its operation depends. continuation of the modern economy ”. Whether the payments are boring or not, I’ll leave it to the reader’s imagination, but the point is that the crucial utility (that is, the service that should be provided to everyone) is not banking, but the payments.

In the same vein, in their new book “The Pay Off-How Changing The Way We Pay Changes Everything“Gottfriend Leibrandt (who was CEO of SWIFT from 2012 to 2019) and Natasha de Teran write that” if access to a banking system is seen as a crucial part of a country’s development and necessary to take people out of the poverty is not as basic a need as the ability to pay “.

In other words, the basic need and the basis for inclusion in society is not a bank account or something like that, but a safe and secure way to get paid and to pay for goods and services. . And this is not a revelation! We already have a detailed case study that shows us what a non-bank approach to inclusion, which is not blockchain but mobile phones, can do: M-Pesa in Kenya. M-Pesa has just reached 50 million monthly active customers, consolidating its position as the largest FinTech platform in Africa.

(Launched over 14 years ago in Kenya, M-Pesa is now available in Kenya, Tanzania, Mozambique, Democratic Republic of Congo, Lesotho, Ghana and Egypt. If you’re curious about to learn more about the foundations of M-PESA, take a look at this coin from 2012.)

It seems to me that a lot of people would be well served by a simple digital wallet, as evidenced by the success of Square.

SQ
Cash in the United States (which generates half of Square’s revenue and has 36 million active users) to make and receive payments. Maybe the utility solution will be something like Facebook’s

FB
Novi wallet soon to be launched in the United States. David Marcus, who heads the Facebook wallet initiative, said in a recent memo that it is market-ready with regulatory approvals in “almost all” US states and that it will deliver. “free person-to-person payments both nationally and internationallyAnd went on to describe Facebook as “a challenger in the payments industry” (which it certainly is).

Banks are not the solution

If we are working on some fundamentals and assume that the primary goal of regulating financial services to consumers is to improve the overall financial health of the population, then we need to find a way to include all of that population in the system: that is, we have to find a utilitarian solution.

A utility solution is not the same as making sure everyone has bank accounts, this is where fintech can make a difference. Anthony Thomas, President of Momo, suggests that the goal of fintech should be to reach the underserved with a wider range of services. As he puts it, “access to payments provides a convenience” and is the basic and essential need, but it is also the first step towards accessing a range of financial services that fundamentally reduce risk – such as credit, investments and insurance – and help people look after their financial health and, as Anthony says, are what “Really improves life. “

Banks need to be heavily regulated because they create credit, the gas that powers the economy but can explode if mismanaged. This means that bank accounts are an expensive and rigid way to solve the problem of underserved people. So we should let the banks focus on their important role in society and let others take care of the payments. Force banks to offer accounts to people who don’t want them, force people to have bank accounts to get a paycheck (then stop them from getting those accounts anyway because they don’t have passport or utility bill) makes no sense and will not help achieve the goal of financial health for all.

Should regulators, lawmakers and commercial banks work together to bring the number of unbanked to zero? No. The goal of a modern, forward-looking strategy should not be to bank the unbanked, but to do away with the banks.


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ICD event discusses ways to promote cross-border disruptive financial services https://bellowingark.org/icd-event-discusses-ways-to-promote-cross-border-disruptive-financial-services/ https://bellowingark.org/icd-event-discusses-ways-to-promote-cross-border-disruptive-financial-services/#respond Sat, 04 Sep 2021 08:25:09 +0000 https://bellowingark.org/icd-event-discusses-ways-to-promote-cross-border-disruptive-financial-services/ The Islamic Society for the Development of the Private Sector (CIM) (www.ICD-ps.org), member of the Islamic Development Bank Group (BIDBG), organized a side event entitled “Role of CIMThe Bridge platform in the digitization and restoration of businesses after COVID-19 pandemic ”September 3, 2021. CIM the goal behind the event was to play a leading role, […]]]>

The Islamic Society for the Development of the Private Sector (CIM) (www.ICD-ps.org), member of the Islamic Development Bank Group (BIDBG), organized a side event entitled “Role of CIMThe Bridge platform in the digitization and restoration of businesses after COVID-19 pandemic ”September 3, 2021.

CIM the goal behind the event was to play a leading role, especially in the post-COVID-19, in the promotion of innovations and cross-border financial services that accelerate the financial recovery of targeted individuals and SMEs through an efficient and rapid deployment of emerging trends driven by key FinTech players in sectors such as ” digitization “,” Open Banking “,” Blockchain “, and” Big Data “,” Cloud Services “and” NeoBanks “.

CIM also aimed to update solution providers and implementers with the latest regulations and policy updates. Besides, CIM also sought out valuable recommendations that enable expansion and cross-border solutions, while establishing new businesses and partnerships that facilitate post-disaster recovery.COVID resilience and prosperity for all.

Among the themes addressed by the event were the challenges and opportunities related to the cross-border expansion of FinTech, efficient and rapid deployments of emerging trends in FinTech, highlighting Fintech sectors such as’ digitization ‘,’ Open Banking “,” Blockchain “and” “Big Data”, “Cloud Services” and “NeoBanks”; in addition to the development of new and innovative solutions by FinTech startups to overcome the financial challenges faced by individuals and SMEs and the new financial regulations recently announced by financial authorities.

In his opening remarks, Mr. Ayman Sejiny, the CEO of CIM, said: “Today, millions of people around the world perform a wide variety of financial transactions through their smartphones without the need to visit a bank branch. New financial products and mobile wallets targeting low-income households are emerging in Africa and Asia. The technology makes it possible to carry out virtually any type of financial transaction – savings, payment, credit – in remote villages using smartphones. FinTechs can accelerate financial inclusion, especially for poor people around the world.

He also said: “We all need to understand and be prepared to accept the disruption and innovation that technology brings into our lives.”

He further underlined the importance of Fintech to achieve financial inclusion goals. “Fintech solutions deliver more effective results compared to separate networks of public institutions and international development organizations. Emerging FinTech-based ecosystems are accelerating access to finance, expanding and monetizing digital footprints. Now, financial inclusion is well served.

Six FinTech Founders and CEOs contributed to this event to highlight their own experiences regarding the challenges and opportunities for expansion in CIM member countries.

Additionally, the session updated the audience with recent and emerging trends related to digitization and the blockchain industry with a view to fostering cross-border expansion for all.

The panelists also touched on the evolution of individuals and businesses when it comes to saving money, making payments, investing and borrowing, while confirming that Fintech solutions currently available allow practically any type of financial transaction – savings, payment, financing. – in remote villages with the use of smartphones. It is evident that FinTech solutions can encourage cross-border financial services with ease and reliability.

At the end of the event, Mr. Sejiny awarded the winners of his international financial innovation competition entitled “CIM‘s Finnovation Award 2020 in the presence of numerous government officials, business leaders of financial institutions, FinTechs entrepreneurs, businessmen and development practitioners attended the event.

“The Finnovation Award recognizes the ideas, inspiration and leadership of financial institutions that contribute to the improvement of the financial sector,” said Mr. Sejiny. “Showcase innovative solutions that have been successfully implemented in one member country and that have the potential to be replicated in other member countries,” he added.

The winners announced for 2020 include:

  1. An innovation solution from Alif Bank of Tajikistan entitled “E-wallet alif.mobi, Salom retail loan card”;
  2. An innovative solution from the Islamic Bank of Maldives titled “Lifestyle Finance to Meet Consumer Demand”;
  3. An innovation solution from Saudi Arabia’s Bidaya Home Finance titled “Data Driven Marketing Campaigns”;
  4. An innovation solution from Green Delta Capital Limited of Bangladesh titled “GD Planner”; and
  5. An Innovation solution from Wifak International Bank of Tunisia entitled “The Plus Card and the Salary Card ++”.

These innovations deserved to be recognized and rewarded because they encourage other financial institutions to view innovation as the main driver of growth and sustainability in rapidly changing times.

This award is presented and sponsored by CIM continue to support the growth and sustainability of the financial sector in order to collaborate in the achievement of development goals and objectives. CIM encourages all financial institutions with highly distinguished innovations to participate in the 2nd edition of CIM‘s global Finnovation Award which will be launched in the fourth quarter of 2021. For more information, please visit the Finnovation Award website at www.innovativeFIs.net.

Distributed by APO Group on behalf of the Islamic Society for Private Sector Development (CIM).

On CIM:
The Islamic Society for the Development of the Private Sector (CIM) is a multilateral development finance institution and is a member of the Islamic Development Bank Group (IDB). CIM was established in November 1999 to support the economic development of its member countries by providing finance for private sector projects, fostering competition and entrepreneurship, providing advisory services to governments and private companies and encouraging cross-border investment. CIM is rated A2 ‘by Moody’s,’ A- ‘by S&P and A + by Fitch. CIM establishes and strengthens cooperation and partnership relations with the aim of establishing common or collective funding. CIM also applies financial technology (Fintech) to make financing more efficient and comprehensive. For more information visit: www.icd-ps.org

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Google Pay users can enjoy Equitas SFB FD benefits without a bank account https://bellowingark.org/google-pay-users-can-enjoy-equitas-sfb-fd-benefits-without-a-bank-account/ https://bellowingark.org/google-pay-users-can-enjoy-equitas-sfb-fd-benefits-without-a-bank-account/#respond Wed, 01 Sep 2021 13:29:00 +0000 https://bellowingark.org/google-pay-users-can-enjoy-equitas-sfb-fd-benefits-without-a-bank-account/ Google Pay users can take advantage of the fixed deposit rates offered by Equitas Small Finance Bank by booking FD on the payment platform without opening a bank account. The bank said it was offering the initiative by connecting APIs created by fintech infrastructure provider Setu for Equitas Bank. In an industry first, consumers can […]]]>

Google Pay users can take advantage of the fixed deposit rates offered by Equitas Small Finance Bank by booking FD on the payment platform without opening a bank account.

The bank said it was offering the initiative by connecting APIs created by fintech infrastructure provider Setu for Equitas Bank.

In an industry first, consumers can book fully digital high-interest FDs through the Google Pay app, without the need to open a savings account with Equitas Bank on-site integrated into the platform. form Google Pay, Equitas SFB said in a statement.

The lender said customers can earn up to 6.35% for a one-year DF, significantly higher than many other savings options.

As the RBI’s regular commercial bank, deposits in Equitas are covered by a deposit guarantee of up to Rs 5 lakh per depositor, he added.

To book a FD on Google Pay, the user must search for Equitas Bank in the “Business and invoices” segment.

In addition, they will need to select an amount and duration for the fixed deposit, provide their personal and KYC (know your customer) information, and complete the payment using Google Pay UPI.

“At maturity, the proceeds will automatically go to the Google Pay user’s existing Google Pay linked bank account,” he said.

Users can track their deposits, add new ones, and place an order for premature withdrawals.

In the event that a user wishes to withdraw the deposit prematurely, the product will reach their bank account as quickly as the same day, Equitas Bank said.

For starters, Equitas Bank’s term deposit facility will be available to Google Pay users on the Android app.

As the bank is set to celebrate its 5th anniversary on September 5, 2021, this collaboration is a dedication to the digital world, he said.

“Equitas was one of the first to adopt digital banking services and Neo banking in particular. This program offers a true FD digital reservation experience; we’ve done our best to make the experience as easy and seamless as possible.

“We hope to increase financial inclusion by fostering a culture of savings, while making the FD booking process simple and easy,” said Murali Vaidyanathan, Senior President and Country Head, Equitas SFB.

Sahil Kini, CEO and co-founder of Setu, said bank FDs are India’s preferred savings instrument and booking an FD should be as easy as making a UPI payment.

“But, most banks require customers to open a savings account and then reserve an FD. By partnering with Setu, Equitas SFB was able to make stand-alone FDs available on Google Pay,” Kini said.

(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)

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Branch wants to change partial financial inclusion to complement financial access – Nairametrics https://bellowingark.org/branch-wants-to-change-partial-financial-inclusion-to-complement-financial-access-nairametrics/ https://bellowingark.org/branch-wants-to-change-partial-financial-inclusion-to-complement-financial-access-nairametrics/#respond Sat, 28 Aug 2021 07:51:58 +0000 https://bellowingark.org/branch-wants-to-change-partial-financial-inclusion-to-complement-financial-access-nairametrics/ While there is a lot that can be said and done in providing banking services to the unbanked, not much is said about those who already have access to a financial product but are still denied access to others. The Managing Director of the Nigeria branch, Dayo Ademola, was the guest of the Nairametrics Business […]]]>

While there is a lot that can be said and done in providing banking services to the unbanked, not much is said about those who already have access to a financial product but are still denied access to others.

The Managing Director of the Nigeria branch, Dayo Ademola, was the guest of the Nairametrics Business Half Hour, where she explained that a significant number of Nigerians only have access to one financial product and not the whole of the sequel.

“Some people only have a bank account for deposits and withdrawals. But they have never had access to loans and overdrafts, or even to investment products where they can monetize their money. This is partial financial inclusion and our goal at Branch is to ensure that everyone has full financial access ”, Adémol explained.

Branch international started in Kenya in 2015, before entering Nigeria as a loan application in 2017. Over the past three years, fintech has expanded its services to other areas to become a fully digital bank. . “We started with a money lender license from the Lagos State government, but now we are fully licensed and regulated by the Central Bank of Nigeria,” Adémol explained.

Investment One

Branch now not only offers loan products, it also offers commission-free financial transactions and investment packages that allow clients to get more money from their money. There is also a referral program where customers refer a friend and earn a bonus. The company has operations in Nigeria, Kenya, Tanzania and India, and is backed by well-known investors around the world.

What is the model?

As a digital bank, Branch operates a leaner single branch model that frees up a lot of funds that could have been invested in operations. Thanks to this, fintech can pass some of these savings on to customers in the form of commission-free transactions.

“Once you’ve downloaded the app, you can set it up in less than five minutes, make deposits and start trading. All transactions are commission free. You also do the KYC and enter other information if you want to apply for a loan. Your loan can be approved within 24 hours and you will have access to the funds. For clients who want to invest, they get a down payment of 20% per year on their investment deposits. There is no lockdown period, so you have immediate and constant access to your money. she explained.

To ensure client deposits are secure, Branch selects and invests only in securities with capital assured.

Data protection and customer experience

As a fully licensed and CBN regulated fintech, Branch takes steps to protect customer data. First of all, the data entered for loan approvals is processed by algorithms, not humans. Its data protection policy complies with NDPR nationally and GDPR globally.

Branch also adds a unique customer experience to their model. After disbursing over 3 million individual loans and around 35,000 reviews, customer service seems to be a feature that consistently gets good reviews.

“Banks like ours are called neo-banks or challenger banks. We are building a banking model that says banking doesn’t have to be the way it has traditionally been in terms of ease, convenience, and affordability. And that is why the slogan “Better than your bank” comes into play ”, Ademola said.

During the pandemic, Branch had to cut loans to manage default rates, but after the pandemic, loan approval numbers rebounded, showing an almost complete recovery from the pandemic.


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